That’s all she wrote! You’ve checked it off your to-do list so you can move onto the important things. In addition, you are responsible for paying what’s called the Employment and Training Assessment (E&T) Rate, which is 0.01%.įor the complete SUI tax rate schedule, head on over to the official State of Hawaii unemployment insurance website. If you’re a new employer (congratulations!), you pay a flat rate of 4%. The 2023 tax rates range from 1.7% to 6.2% on the first $56,700 in wages paid to each employee in a calendar year. Hawaii State Unemployment Insurance (SUI)Īs an employer in Hawaii, you have to pay unemployment insurance to the state. Employees who earn more than $200,000 a year will hit the highest tax bracket. Hawaii charges a progressive income tax, broken down into a whopping 12 tax brackets, and they range from 1.4% on the low end to 11% on the high end. Now that we’re done with federal taxes, let’s look at Hawaii state income taxes. Make sure you take these into consideration as well. Most of your employees won’t have any post-tax deductions, but you might need to withhold things like court-ordered wage garnishments, child support, etc. It’s an easy way to save a whopping 90%, so make sure you take advantage! Because only you as the employer are responsible for paying FUTA taxes, you don’t need to withhold FUTA from your employees’ paychecks. You can claim a tax credit of up to 5.4% for state unemployment tax you pay, as long as you pay in full and on time. FUTA taxes come with a huge caveat that you will want to know about. Only employers are responsible for paying this tax. Pay FUTA unemployment taxes, which is 6% of the first $7,000 of each employee’s taxable income, which comes out to a maximum tax of $420 per employee per year.Employers are not responsible for paying the Additional Medicare Tax. For employees who earn more than $200,000 per year, you’ll need to withhold an Additional Medicare Tax of 0.9%, which brings the total employee Medicare withholding above $200,000 to 2.35%. For Medicare tax, withhold 1.45% of each employee’s taxable wages until they have earned $200,000 in a given calendar year.For Social Security tax, withhold 6.2% of each employee’s taxable wages until they have earned $160,200 in a given calendar year.Deduct and match any FICA taxes to cover Medicare and Social Security taxes:.We won’t get into the nitty-gritty here, but you can find further withholding information through the IRS Publication 15-T. ![]() ![]()
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